buying a condo

Yes many condo complexes do this (especially here on the north coast) and if you are lucky and it is a good condo in a good location you may earn enough to cover all of your on going expenses and just maybe a bit more, but don't count on it.
I am still not so sure why you are so set on buying right off and not just rent the first few times you come down?

Bob K

I agree with Bob K, I would buy whenever I decide to move down full time. Come few times, explore different areas of the island, each part has a different feel, find out where you like it the best and then make a decision. We lived on the north coast for 2 years and loved it, one day we went to the south coast and realized we like it better and moved.
Denise

I understand what you mean and it does make a lot of sense but unfortunately it’s not possible for me.  I work in an office that doesn’t allow for a leave of absence.   The reason I would buy is because it would be cheaper and easier than renting (for me anyway).  I’ve been to Sosua and Cabarete and have decided that Cabarete is where I would like to live.  When I move down it will be full time but if for some unseen reason I have to return to Canada I’d still have the condo and would rent or sell it.  I think that eventually the prices will go up as more and more people are finding out about retiring in the Caribbean.  The only thing I’m really concerned about is my dog.  I want to make sure there are good vets and that I can get to them fast in case of emergency.  I’ve also heard several incidents of poisoning that have me worried.  Although the same thing happens here in Canada so I’m not going to let that hold me back.  That actually should be another thread...

There is a very good vet in Sosua that most of the Expats use. Dr. Bob is available at all hours by phone when he is not in the office.  So no worries there. He will also give you a poison kit to use if you should have to.

I do disagree somewhat on your philosophy of buy now and sell it if you have to. Selling condos can be very difficult especially is not in one of the top complexes.  Believe me. I sold real estate here for 6 years and I know the market pretty well.  Renting also can be a problem even with a good management team working for you. 

Bob K

Thanks Bob, I appreciate your help.  I’m still in the early stages of what to do so wasn’t planning on coming down before the winter (although I would if I could!).  I knew you sold real estate and was hoping for some of your expertise.  Can you give me any information on either Windchimes or Orilla Del Mar condos?  I’ve heard mixed reviews about the management of one and good about the other.  I know they might not be the top complexes but they are affordable for me and accept pets.  I’m not looking to buy for an investment, I’m looking for a new home.  I also know that many people have said that DR isn’t for everyone and I was wondering if you could tell me some of the reasons that people leave?

I Don't know Orilla de Mar that well. Wind chime certainly is well located and Mark has done a good job with the renovations. The apartments look good (those that have been renovated). I cannot comment on either on rental potential other than Wind chime seems to have a good record.
Many leave because living here is not as easy as everyone imagines living at the beach on a Caribbean island is. There are daily challenges, inept workers (craftsmen), petty crime, lots of folks who will try to take advantage of you, no 24 hour electricity and lots of blackouts (getting better in parts of the area), very expensive electricity... In fact the cost of living here is getting more expensive every day and folks think they can live here cheaply...wrong.  If you are very carful and buy only local products you can live here for 15-30% cheaper then in the US. That is if you don't own a car, use Air conditioning very much and keep the night life to a reasonable level.
Hope this helps.
If you want more info on the north coast PM me.

Bob K

Before you buy a condo with the hope to generate some rental income, there are several things you need to consider carefully.  Just because there are a lot of condos does not necessarily mean that everyone is making money.  Here are some of my observations...

1.  Check on the condo management to see how well they manage the property in the opinion of the other owners as well as any guests who have rented there.

2.  Determine the condo fees.  Condo fees in Cabarete and Sosua have a huge range differential.  What are you getting for those fees?  Is there a restaurant/bar in the project you are paying for?  Do you get revenue from it?  Etc.

3.  Cabarete is a charming town, no doubt, but one of its biggest problems is that the condo community is not organized.  The result is that the owner of Condo A, next to and identical to your Condo B, can underprice his rental by $10 to mooch your clients.  You will have hundreds of 'competitive' neighbors you need to have a plan to manage.

4.  Purchasing a rental property, condo or otherwise, is a business decision and should be handled like one.  If you don't manage it carefully, like a business, I can guarantee you will lose your ass and be very disenchanted with the whole process.

5.  When you buy the condo, buy it outright without any mortgages or future payments needed.  Do not believe rental income will help you make your payments!

6.  Use a qualified, reputable lawyer and do not use the same lawyer that the seller or the condo association is using.  I'd suggest Julio Brea from Guzman Ariza or Jeanette Garcia from Garcia Blanco. 

7.  Make certain you get an individual title to the property, called a "deslinde" here.  Take no promises to "get it to you in the future."  Every condo project has had plenty of time to get their deslindes by now unless they are using your money to do it.  The real estate laws of the country will not protect you unless you have your own title.  You'd have to rely on the civil courts which, in this country, are beyond a joke.

8.  Ask questions.  It is very easy to come here, become enamored with the people and location and lull yourself into a feeling of security with a real estate purchase.  Approach it with sober, open eyes, asking loads of questions of everyone.  If you are working with a realtor you may find yourself in a 'protective bubble' where you are seemingly always with them or their friends.  Get out of that bubble and ask others who are not necessarily known to the realtor. 

9.  Remember that realtors are not licensed in this country so telling you a load of crap isn't against the rules...it seems to be part of the rules.  There are honest ones, to be sure, but be very careful and be skeptical to start with to protect yourself.  Get recommendations.

10.  If I haven't scared you off yet, once you make your purchase following these (and other) rather obvious 'rules of the road' you'll find yourself owning a piece of paradise you will brag about with your friends for years to come.  This is a beautiful country with magnificent people and a climate without compare in the Caribbean.  You will truly enjoy it here!

Castellamonte
Good post and welcome to this forum

Bob K

Thanks Bob I will pm you (when I figure out how).  Oh and thanks for the information on Dr Bob, I’m familiar with his clinic and the poison kits.  Veterinarians were the first thing I researched when I decided to move to DR.  I visited Judy’s Pet Lodge when I was in Sosua and also met some of the people who help the street dogs.  One of the things I plan to do when I move there is help out in some capacity at her lodge.

Thank you Castellamonte, no you haven’t scared me off.  You have given me a lot of good information.  I’m not planning on purchasing with hopes of renting and making a profit.  I would like to buy and if I did it sooner than when I planned to move to DR I thought if I rented it out I could save on the condo fees in the interim.  I’m looking for condos with everything included in the fee so it will be easier to budget.  I would definitely pay for a condo outright but if for some reason I needed to borrow the balance than I would make sure I was capable of paying it off without revenue from renting the condo.   And I would definitely find a good lawyer.